Time is right for a national approach on Road User Charging

The Australian Logistics Council (ALC) has welcomed comments by the Australian Government, on the importance of coordinating a nationally consistent Road User Charge (RUC).

ALC supports the development of a national RUC system through the National Cabinet process, to ensure a sustainable stream of investment in transport infrastructure and to provide clarity for operators in the freight and logistics supply chain.

This follows comments in The Australian newspaper today, quoting Federal Minister for Finance, Simon Birmingham, describing the road user charging systems in Victoria and South Australia as “mature approaches” and outlining the need for a sustainable revenue source to build infrastructure.

ALC CEO Brad Williams, said it was critical that National Cabinet established a pathway for the development and implementation of a nationally consistent RUC across all vehicle classes[1].

“Australia has a national economy and we need to put in place a fit for purpose and nationally consistent RUC system.

“The uptake of electric vehicles provides an important catalyst for change and if we get the reform consistent across the board, it will provide a sustainable source of investment for government to build and maintain safer, more efficient road networks,” Mr Williams said.

In a submission to the Senate Economics Committee[2] last year, ALC outlined the need for a nationally consistent road user charging system across all jurisdictions, to avoid regulatory duplication.

“A nationally consistent reform will require collaboration between Federal and State / Territory Governments to deliver uniformity for the supply chain,” Mr Williams said.

“Freight knows no borders and inconsistencies with road charging schemes will create confusion and difficulty for those in the national freight and logistics supply chain,” Mr Williams said.

ENDS.

[1] Federal Financial Relations Review Final Report (2020, p84-91): https://www.treasury.nsw.gov.au/four-pillars/federal-financial-relations-review/federal-financial-relations-review-final-report

[2] COAG Reform Fund Amendment (No electric vehicle taxes) Bill 2020: https://www.austlogistics.com.au/wp-content/uploads/2021/03/ALC-Submission_COAG-Reform-Fund-Amendment-No-Electric-Vehicle-Taxes-Bill_FINAL.pdf